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Setpoint, a behind-the-scenes provider of technology and funding that streamlines financial transactions for real estate brokerages, proptech companies and lenders, has raised $31 million in a Series B funding round led by 645 Ventures.
The New York-based fintech previously raised $43 million in a December 2022 Series A funding round led by Andreessen Horowitz, and last year acquired due diligence provider Resolute Diligence Solutions.
The latest funding round, announced Tuesday, brings Setpoint’s total capital raised to date to $76 million, and included strategic investments from Citi and Wells Fargo. Andreessen Horowitz also participated, with other investors including NextView Ventures, Floating Point, Henry Kravis, 75 & Sunny, Vesta Ventures, Fifth Wall, Eltura Ventures and Outrunner Capital.
Stuart Wall
“Setpoint is building trust in our credit system,” Setpoint co-founder and CEO Stuart Wall said in a statement. “Our vision is to make credit transactions instant, automated, and error-free. This funding round, supported by leading financial institutions and investors, propels us forward in our mission to build the technology infrastructure for capital markets.”
Since launching in 2021 as the “Stripe of real estate” providing technology and funding to companies including Homeward, Flyhomes, Reali and Houwzer, Setpoint has expanded into additional asset-backed lending lines including auto, consumer and small business.
Setpoint claims it’s now facilitating close to 100,000 transactions a year for clients including GreenSky, Carvana, Fundbox, Nomura, Capchase, Kyte, Archwest and Pathway.
The new funding will be used for research and development and expanding Setpoint’s engineering and data science teams.
“This Series B allows us to continue to double down on areas of tremendous impact: leveraging machine learning and large language models (LLMs) to enhance the verification of asset data and calculations, driving further innovation in the credit infrastructure space,” Wall said in a blog post.
Working with proptech companies including OfferPad and UpEquity, Setpoint says it’s funded more than $3.5 billion in real estate transactions through an affiliated capital provider.
In May, Setpoint provided third-party review of a $209 million rated securitization of “fix-and-flip” residential transition loans (RTLs) offered by New York Mortgage Trust Inc., a publicly-traded real estate investment trust (REIT).
“Being named on a rated transaction requires passing stringent scrutiny, and this accomplishment highlights our capability to meet the highest industry standards,” Wall said at the time.
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